Question

You find a stock selling for $50.36 that has a dividend yield of 2.50 percent. What was the last quarterly dividend paid? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Quarterly dividend /share

Answer 1

To calculate the last quarterly dividend paid, multiply the dividend yield by the stock price. Then, divide the annual dividend by 4 to get the quarterly dividend.

Step-by-step explanation:

To calculate the last quarterly dividend paid, we can use the dividend yield percentage.

The dividend yield is the annual dividend per share divided by the stock price. In this case, the dividend yield is 2.50%, which means the annual dividend per share is 2.50% of the stock price.

We can calculate the annual dividend per share by multiplying the dividend yield by the stock price.

In this case, 2.50% of $50.36 is $1.26.

Since the dividend is paid quarterly, we can divide the annual dividend by 4 to get the quarterly dividend.

Therefore, the last quarterly dividend paid would be $1.26 divided by 4, which is $0.315.